Södra Posts Operating Loss in Q3 2025 Amid Challenging Market Conditions and Currency Pressures

Södra reported a significant loss for the third quarter of 2025, with an operating loss of SEK 360 million compared to a profit of SEK 937 million the previous year. Net sales fell 9% to SEK 6,349 million, largely due to currency effects and declining demand. The results reflected high raw material costs and adverse exchange rate impacts, which combined to heavily pressure profitability. Despite ongoing cost-saving measures and efficiency improvements that generated SEK 341 million annually, market conditions remained challenging, affected by global uncertainties, tariffs, and overcapacity in pulp and timber markets. CEO Lotta Lyrå emphasized that the company is undertaking intensified actions, including a SEK 1.5 billion investment in a new sawmill in Kisa, Sweden, to bolster long-term competitiveness. The quarter’s financial deterioration underscores the importance of the company’s strategic adaptations to a volatile external environment.